Are rare earth metals a good investment

The rare earth industry should contribute to China's carbon neutrality

Since the country proposed going carbon neutral by 2060, the term "carbon neutral" has quickly gone from an unfamiliar term to a buzzword. In September 2020, China announced that it would strive to peak carbon dioxide emissions by 2030 and strive to be carbon neutral by 2060. In this year's government work report, it is proposed to do a solid job in reaching the peak of carbon, carbon neutral work.

Industry insiders pointed out that China's proposed goal of achieving carbon neutrality by 2060 is an opportunity for the rare earth industry, as it will play an important role in increasing demand for functional rare earth materials, especially rare earth Ndfeb permanent magnets.

Carbon neutrality means that man-made removal of CARBON dioxide is offset by man-made emissions over a specified period of time.The most fundamental way for China to achieve carbon neutrality by 2060 is to transform the energy structure and replace fossil energy such as coal, oil and natural gas with clean energy such as renewable energy and nuclear energy. At present, the more representative is to use electric cars instead of fuel cars, wind power generation.

Whether new energy vehicles or wind power generation, they are inseparable from the application of rare earth Ndfeb permanent magnets.Moreover, carbon neutrality policy will promote rare earth NdFEB permanent magnets to accelerate penetration. Nd-fe-b permanent magnet has obvious advantages in body joint energy. 

Two aspects to promote China's goal of achieving carbon neutrality

On the one hand, ndFEB permanent magnet motors are efficient, and their increased permeability will reduce power consumption.On the other hand, ndFEB permanent magnets will help the development of new energy. More than 40% of wind turbines use rare earth NDFEB permanent magnets, which will help the development of clean energy.At the same time, the driving motor of new energy vehicles mainly adopts rare earth Ndfeb permanent magnet, which is conducive to reducing the use of fossil energy and carbon emissions in the future.

With the global awareness of fossil energy crisis, the new energy vehicle industry has developed rapidly in recent years.Both the rapid growth of emerging auto companies and the active transformation of traditional auto companies convey to the outside world the arrival of the electrification era of the auto industry.Governments of various countries have introduced a series of timetable to stop the sale of fuel cars, and China also proposed to fully "expel" fuel cars by 2050.

By the end of 2020, a total of 10 million electric vehicles were put into use worldwide. In 2020, the registration volume of electric vehicles increased by 41% year on year. The sales volume of new energy vehicles in China was about 1.367,000, up 10.9% year on year, accounting for 5.4% of the national automobile sales volume, up 0.8% year on year.

In the "New energy Vehicle Industry Development Plan (2021-2035)" issued by The State Council, it is proposed that by 2025, China's new energy vehicle sales will reach about 20% of the total sales of new cars.And by 2025, it will establish a sound technology system and industrial chain of electric vehicle power system to provide technical support for the realization of the ownership of new energy vehicles reaching 5 million by 2025.

According to experts, a full-automatic car consumes about 0.5~3.5kg of rare earth Ndfeb permanent magnet.According to the demand of 5 million new energy vehicles for rare earth NdFEB permanent magnets, it will drive the development capacity of at least 25,000 tons of rare earth mines.By this calculation, 10 million new energy vehicles will drive at least 50,000 tons of rare earth mining demand, equivalent to the current annual production of rare earth in northern China.

With the continuous implementation of China's carbon neutral policy, it is believed that the demand of rare earth will be greater and greater.The rare earth industry, as the carrier of China's implementation of carbon neutrality policy, should be the main first mover, shoulder a greater mission, and make due contribution to China's realization of carbon neutrality goal.